Creelon at TMF nails it:
Sonus has beaten estimates now for the past 4 quarters. Management has become more vocal about their leadership position and their increased visibility regarding future revenues.
Sonus reached the 17% operating margin target two quarters early.
Carriers have finally begun to deploy VOIP in access and no other vendor has attained a competitive position. In the core, 80% of the market remains up for grabs and Sonus has owned the market so far.
With a strong lead in wireline and wireless, look for Sonus to begin penetration in cable in 2H 07. At that time, it could well be game, set, and match for the LU-ALA,NT, and Siemens bunch for this hottest sector of the telecom market.
More and more carriers have come to the conclusion that the hybrid solution of bolting on a legacy vendor switch to a TDMA central office simply will not scale or offer the cost effectiveness of going all-IP.
The really exciting part of this scenario is that no other vendor has surfaced with a scalable, carrier-grade (5-nines or better) platform except Sonus.
If you can accept the volatility that is inherent here, I predict you will do very well with your "real SONS"
If there is an M & A activity with regards to SONS, now is the time for it to show up since this upsurge in price will make a buyout that much more expensive. I hope no one is interested or that the price is too high, or whatever, as I want this as a stand alone company; not interested in selling at 12-15, which is what a buyout would yield. |
